LONDON: Pod Point’s board announced on Thursday that EDF Energy Customers Limited (EDF), which already owns about 53% of the company, has proposed to acquire the remaining issued and to-be-issued shares. EDF’s non-binding conditional proposal values the shares at 6.5 pence each in cash, subject to limited due diligence.
The potential offer comes amid a challenging EV charging market and Pod Point’s strategic repositioning toward the UK Energy Flex market. The board acknowledged the need for significant new capital to sustain growth, citing various refinancing options under consideration. However, it currently views EDF’s proposal as potentially the best course for shareholders, creditors, and stakeholders.
As part of the process, Pod Point’s independent directors, excluding EDF’s representative, are engaging with EDF to assess the offer and its terms. If the proposal advances to a firm offer under Rule 2.7 of the City Code on Takeovers and Mergers, EDF must meet pre-conditions, including agreement on documentation, a unanimous recommendation by independent directors, and additional shareholder commitments.
The announcement noted that the company’s financial challenges will delay the release of its fiscal year 2024 audited results. Pod Point expects to miss the April 30 deadline, leading to a suspension of trading starting May 1. Shares will resume trading once the audit is complete.
EDF must confirm its intention to proceed with the offer or withdraw by May 22, as required under the City Code. There is no guarantee that a firm offer will materialize, the board said.